The Influence of the Big Data Analytics and Circular Economy on the Sustainable Performance of SMEs
Keywords:
Circular Economy, Big Data Analytics, Sustainable Performance, Sustainable Development, Small and Medium-sized EnterprisesAbstract
Even though small and medium-sized enterprises (SMEs) contribute substantially to the nation's economy, they can greatly impact the environment. Hence, to achieve long-term sustainability, SMEs must consider the implementation of environmental-friendly practices. Another solution for organizations is to utilize the circular economy, including the application of digital technology, to foster growth, development, and opportunities, to achieve the sustainability of the organization. The objectives of this research were to study: 1) the influence of big data analytics on the adoption of circular economy practices in organizations; 2) the impact of circular economy practices on sustainable performance; and 3) the influence of big data analytics on sustainable performance through the implementation of circular economy practices in organizations. The researcher used a questionnaire as a data collection tool, collecting data from participants based on a purposive sampling approach. In total, 200 questionnaires were collected; the collected data were statistically analyzed and the proposed hypotheses were tested using partial least squares-structural equation model (PLS-SEM) analysis. The findings reveal that big data analytics could support the implementation of circular economy practices in organizations. In addition, the implementation of circular economy practices in the organization could increase its sustainable performance. Furthermore, it was ascertained that big data analytics could lead to sustainable performance improvement in organizations by supporting the implementation of circular economy practices.
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